Business | Markets
Emirates looks to new horizons
Emirates, the biggest Arab carrier, will watch the market response to the initial public offering (IPO) of DP World that closes next month before moving towards its own IPO, according to an official.
- By Saifur Rahman, Business News Editor
- Published: 10:11 October 29, 2007
- Image Credit: Supplied Picture
- Emirates' move comes close on the heels of DP World's announcement that it would list on Dubai International Financial Exchange (DIFX).
Dubai: Emirates, the biggest Arab carrier, will watch the market response to the initial public offering (IPO) of DP World that closes next month before moving towards its own IPO, according to an official.
"We will closely observe the market response to the DP World IPO before making our own decision," said a source close to Emirates.
"The value of Emirates could be anywhere around $25 billion (about Dh91 billion), based on its profitability and assets," he said. This puts the value of the airline at least 25 per cent higher than that of DP World - the world's third largest port operator.
Emirates Group posted a Dh3.09 billion net profit in its last financial year ending March 2007, on Dh29.83 billion revenues. It reported a cash flow of more than Dh11 billion on March 31.
"The airline does not need extra money. We have a healthy cash balance. So the IPO is not essential for us," the source said.
Shaikh Ahmad Bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, was quoted by the The Times as saying, "I think for sure Emirates will also, in the future, do something like that," referring to the DP World IPO.
More from Markets
More from Business
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
